InfoQuest News Agency (18 Jan '24)
Advise IT Infinite Public Company Limited (Advise) has priced its initial public offering (IPO) of 170 million shares at 3.24 baht, valuing the total offer at 550.08 million baht. Thailand) as a financial advisor. Service/Commercial Business Group to list on Stock Exchange (SET) on January 31, 2024.
Advise appoints Asia Plus Securities as underwriting manager and underwriter. KGI Securities (Thailand), UOB K Hian Securities (Thailand) are joint distributors and underwriters, as well as underwriters and underwriters Krungsri Securities and Co. L. Yuanda (Thailand)
This method determines the IPO offer price based on the ratio of the company's share price to its net earnings per share (Price to Earnings or P/E Ratio). The share price assumes a ratio of 3.24 baht compared to an earnings per share calculated from net profit of 0.4465 baht for the last 12 months (from 1 Oct 2022 – 30 Sep 2023), for a price to net earnings per share (12-month P/E ratio) of 7.26 times. ) is calculated as a P/E ratio equal to 10.00 times Baht 200.9 million divided by the amount of all shares outstanding prior to the IPO, compared to the earnings per share of Baht 0.3240. IPO, which is equivalent to 620,000,000 shares (Post-IPO diluted or fully diluted)
It compares and consults the P/E of comparables in the stock market in the last 3 months. The P/E of the IT product retailer group COM7 has a P/E of 18.63 times, while the P/E of the product wholesaler group, IT, namely SIS, SVOA and SYNEX has a P/E in the range of 12.37-15.13 times, which A share issue price of 10 times P/E represents a direct discount from the average P/E. Comparable companies are approximately 46.3%.
The ordinary shares of the participants in management are 444,033,333 shares, the shares of participants in management in peacetime are 341,000,000 shares, or 55%. Therefore, the remaining shares of the management participants are not in the quiet period, the period of 103,033,333 shares, which is 16.62%, in which all existing shareholders agreed and voluntarily agreed not to sell all shares in addition to the quiet period criteria of the stock market (voluntary share lock-up as follows). .
– Major shareholders Mr. Nath Nadikarat and Mr. Amorn Dathong agreed not to sell 67,560,000 shares which are not in silent period for 3 months from the first day of trading of shares.
– Another 6 existing shareholders namely Mr. Precha Sinaba, Mr. Paramedh Ek-un, Mr. Pancha Wonglikbai, Mr. Khan Butanalak, Mr. Charan Prakhan and Mr. Ekachai Ravesensoor agreed not to sell silent unincorporated shares. . Period, aggregate amount 41,440,000 shares, 1 month from trade date.
Nat Nattanikaram will use the proceeds from the fund raising of approximately 527.3 million baht (after deducting expenses) to invest in the company's business expansion, Advise's CEO said. Expansion of branches and improvement of existing branches including repayment of loans. Used as working capital to purchase products and upgrade IT systems.
After raising this fund the company is confident that it will help the company's capital base to become even stronger. Get ready to expand to new opportunities. and support consulting to become the number one IT company stocks in the country. Ready to set a target to increase market share through branch expansion and sales through franchised stores and social commerce.
Including expanding as an official distributor of Apple products by the first quarter of 2024. If officially appointed, the company will open an “iStudio by Advice” store, which will open by the end of 2024. To fully sell Apple products, including generating additional revenue through official product service and repair centers. The company is focused on expanding its corporate customer base and increasing gross margins by adjusting the assortment of products sold. It will increase to 7% of total income by 2024, from the current rate of approximately 5%.
Additionally, it increases profitability by improving operational efficiency. To achieve our goal of maintaining our position as one of the leaders in the retail-wholesale business of integrated IT products. Profits are steadily growing along with steady growth of partners
The revenue growth target for 2024 is 10% over the previous year and plans to grow at least 10% per year on average over the next 3 years from expanding the business to distribute smartphone products. Nutt said. They were representatives of Apple, the rate of increase in revenues of smartphones. Doubled from 5% to 10% in Q3 2023. The company currently distributes Apple products in around 64 advisory stores and will distribute to 75 branches by Q1 2024.
By Warinthon Sirinok/Savolak Fon/Sasithorn Simborn
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